| On The Web |
| Yahoo Targets Behavior-Based Advertising |
| by Tom Hanson |
| Yahoo! seeks to increase advertsing revenue. |
In a sign that we are sliding ever closer to Big Brother, Yahoo! has begun tying advertisements and advertising rates to the surfing behavior of its users.
In moving towards the behavior based focus, Yahoo! expanded on its traditional customer demographics and the geographic location of users for ad targeting. Tracking the behavior of a user utilizing the site will enable Yahoo! to increase advertising revenue.
The behavior based focus allows Yahoo! to charge advertisers more for an individual ad. The basic premise of the behavior based approach is that it stresses the three advertising r’s - the right ad at the right time at the right place. Under the new system, Yahoo! now tracks a user’s search queries, his or her movements through various Yahoo! sites as well as the specific ads the surfer chooses to click on. After collecting that information, the company then uses that prior behavior to decide which ads are most appropriate to display for that visitor. Such targeting behavior occurs literally on the fly, ensuring that three advertising r’s take place instantaneously.
Traditional search functions at both Yahoo! and its search engine rival Google Inc. currently base their ad placement on keywords searched. In the keyword search selection, a person searching for information about ATVs online would then see ads focused on ATVs as well as ads that appeal to the demographic group known for being interested in ATVs (other outdoor activities or motorized vehicles). The new Yahoo! behavioral targeting uses other factors to provide an even more sophisticated set of ad options based on that user’s prior ad selection. Though looking for ATV’s during a search, that user may have clicked on ads related to Plasma televisions when using a Yahoo! site previously. In using behavior based advertising techniques, that user may now see an ad for Plasma televisions even though he/she is doing a keyword search for ATVs.
Yahoo! insists that the ad targeting based on user behavior will remain anonymous, that it will not make the collected information available to respective advertisers. But by offering both traditional text-based keyword search advertisements as well as brand-reinforcing ads, Yahoo! will be able to raise its advertising rates for its site, making it more competitive with search engine giant, Google Inc. |
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